US Investment Banks Are Optimistic About the Market Prospect of Model 3 and Give Tesla a a Buy Rating

According to the report of Fortune magazine on March 24, Beijing time, Adam Jonas, an analyst at Morgan Stanley, an American investment bank, pointed out in a research report on Thursday that the upcoming Tesla Model 3 will be equipped with more advanced hardware and software, and its security will be 10 times that of current ordinary vehicles.This significant improvement in security will not only promote the sales of model 3; Jonathan said that if Tesla can show this safety - which means that the possibility of fatal car accidents caused by model 3 is reduced by 90% - it may lead to the decline of the used car market and even subvert the whole auto insurance industry.Jonas gave Tesla a a "buy" rating with a target price of $305. Tesla shares traded at $255.47 on Thursday afternoon.

Safety improvement stimulates Tesla car salesJonas wrote in the report: "We believe that the hardware and software equipped with model 3 will greatly improve its safety and can greatly stimulate the sales of all other Tesla models in the market today. If Tesla can achieve this goal, the safety of model 3 will be 10 times that of ordinary vehicles on the road. According to almost every OEM we recently surveyed, safety is the basis for users to decide whether to buy vehicles The main reason. We expect that safety will be a highlight of this new model launched this year. "Jonas made this judgment because of the great potential of Tesla autopilot software and supporting hardware such as sensors, cameras and radars. Autopilot is a semi-automatic driving function launched in 2015, and Tesla continues to improve the performance of this technology through OTA software upgrade.

Last year, Tesla CEO Elon Musk announced that all new Tesla models, including model 3, will be equipped with more reliable radar and camera systems (i.e. "hardware 2"). This upgrade will push the automatic driving function to a new level and finally realize real unmanned driving.It is reported that when buying a new car, users can book an upgraded autopilot system, or even a more powerful "fully automatic function". The new model with this function will be equipped with eight cameras, ultrasonic sensors, radar and supercomputer - the data processing speed of this supercomputer will be 40 times higher than before.Model y may become Tesla's best-selling model

As the "brain" of Tesla electric vehicles, autopilot will continue to improve and gradually improve its performance by means of system upgrade. However, due to regulatory reasons, it is unclear when users can really experience fully automatic driving. Jonas believes that Tesla will not encounter the problem of increasing high-end technical performance (such as liquid cooled supercomputer) The liquid cooled supercomputer will double the safety of the vehicle.Jonas also mentioned a tweet published by Musk on January 19, which said that Tesla's goal is to reduce the probability of fatal accidents by 90% with the continuous maturity of autopilot software and a new generation of autopilot hardware.The U.S. government conducted a six-month investigation into a fatal car accident involving Tesla, and the results prompted root, an Ohio auto insurance startup, to offer discounts to drivers using Tesla's semi-automatic autopilot system. Root did so because the U.S. Highway Safety Administration found that in autosteer (part of the autopilot system) After the launch, the probability of Tesla vehicle accident decreased by nearly 40%.

In another research report, Jonas also predicted that the small SUV model y may become Tesla's best-selling model. "We believe that Tesla's small SUV will become the world's largest selling model. We also expect that model y will become Tesla's on-demand sharing service due to greater passenger space, luggage space and modular seat configuration "Tesla mobility")